Tamil Nadu Dairy Development Minister Mano Thangraj has said the State government will consider increasing the milk procurement price paid to farmers to ₹44 per litre, responding to continued demands from dairy farmers for better returns. The proposal comes shortly after the government raised the effective procurement price from ₹38 to ₹41 per litre.
The latest move is significant for Aavin, which has been facing pressure to retain its farmer base amid competition from private dairy companies offering higher procurement prices.
Farmers have argued that rising costs of cattle feed, fodder, labour and other inputs have reduced their margins, making a further revision necessary. The proposed ₹44 rate is also linked to the demand that the government honour its earlier commitment on procurement pricing. For Tamil Nadu’s cooperative dairy sector, the issue extends beyond the price paid to farmers: Aavin must balance competitive procurement, farmer income, milk availability, consumer affordability and the financial sustainability of the cooperative.
The possible revision therefore signals the growing importance of farmer remuneration in securing a stable milk supply for organised dairy networks.
Source: Dairynews7x7 25 Aug, 2026 Read full story here
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